A Business Has the Following Transactions: the Business Is Started $\begin{array}{l}\text { Accounts receivable }\\\begin{array} { l | l } \hline 9,000 & \\& 1,500 \\\hline & 7,500\end{array}\end{array}$

question 117

Multiple Choice

A business has the following transactions: the business is started by receiving $20,000 from the owner.The business purchases $500 of supplies on account.The business purchases $2,000 of furniture on account.The business renders services to various clients totaling $9,000 on account.The business pays out $2,000 for Salary expense and $3,000 for Rent expense.Business pays $500 to supplier for the supplies purchased earlier.The business collects $1,500 from one of its clients for services rendered earlier in the month.At the end of the month,all journal entries are posted to the ledger.The Accounts receivable account will appear as follows:

• A)
• \(\begin{array}{l}
• \text { Accounts receivable }\\
• \begin{array} { l | l }
• \hline 9,000 & \\
• & 1,500 \\
• \hline & 7,500
• \end{array}
• \end{array}\)
• B)
• \[\begin{array}{l}
• \text { Accounts receivable }\\
• \begin{array} { l | l }
• \hline 9,000 & \\
• & 1,500 \\
• \hline 7,500 & \\
• \end{array}
• \end{array}\]
• C)
• \[\begin{array}{l}
• \text { Accounts receivable }\\
• \begin{array} { l | l }
• \hline 9,000 & \\
• & \\
• \hline 9,000 &
• \end{array}
• \end{array}\]
• D)
• \[\begin{array}{l}
• \text { Accounts receivable }\\
• \begin{array} { l | l }
• \hline 9,000 & \\
• & 1,500 \\
• \hline 7,500 & \\
• \hline
• \end{array}
• \end{array}\]

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Definitions:

Federal Reserve System

The United States' primary bank system, tasked with monetary policy management.

National Banks

Financial institutions chartered by the federal government, subject to national banking laws and regulations.

State Banks

Financial institutions that are chartered by a state to provide banking services, distinct from those chartered by the federal government.

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Negotiable Order of Withdrawal accounts; interest-earning deposit accounts from which holders can write checks.